Investment Q&A

Q: When does Constellation announce their earnings. Different sites give different answers. The Globe and Mail states February 5th. is that correct? Thank you.

Q: Sorry to sound like a broken record, but I'm kind of a deer stuck in headlights right now with regards to these software names, notably CUS, LMN, TOI, and with the news impacting TRI this morning. I've largely held onto these names and I'm not sure what to do here. Seeing constant and relentless daily selling is tough to stomach and time will only tell how much AI will impact these companies fundamentals.

In the meantime, what do I do? I don't want to hold onto losers and continue to see these go down further, at the same time, I don't want to sell at these lows. I know trimming some is an option. I have positions in these other names, do you feel any of these are vulnerable to AI severely impacting them? CRWD, SHOP, SRAD, GENI, SPOT

Thanks!

Q: Hi 5i Team,

These two companies have pursued similar strategies it seems over the years and both have been badly beaten up. Is there a preference among the two of them and why?

Thanks!

Derek

Q: I’ve heard and read comments that Constellation’s precipitous drop is fuelled by sentiment.

Would the same not be true of its climb?

In retrospect would you say that the $5000 price was overvalued? Was it ever worth that much? What ever “worth” means. Or were investors just chasing the latest thing.

On a positive note, I now no longer have to sell some to rebalance.

Q: These stocks are all down today. Does this have anything to do with Anthropic?

thanks

Q: Given the drop in CSU and OTEX today would you be buyers of either?

Q: Hi 5i,

In the event of a sharp pullback in the markets, what would be your top 5 stocks that would be on your radar to purchase?

Putting aside sector/industry/US or CAD markets and with the mindset of a 5+ year hold.

Thank you,

Greg C.

Q: Everyone, I asked AI about the psychology of CSU stock price falling and below is the summary portion of the full answer, and it is a interesting response,

Clayton

Recent CSU Price Pressure – Real Examples

Here are some real movements that show how psychology plays out:

• Analyst Calls & Target Cuts
Analyst price targets on CSU have been trimmed by brokers recently, even while maintaining Buy ratings. That doesn’t mean the business is weak, but it signals caution to the market. 

• Technical Downturn
CSU has traded under long-term moving averages—a common trigger for mechanical and psychological selling pressure. 

• Sentiment vs. Fundamentals
Even when overall earnings and free cash flow remain strong—as reported in various market discussions—the share price can lag because investors are pricing in uncertainty about profitability trends or strategic direction. 

⸻

🪞 So What’s Really Happening?

When Constellation Software’s stock falls:
• It’s often fear or uncertainty driving price, not necessarily deteriorating business fundamentals.
• Leadership changes + sector narratives can outweigh positive earnings or cash flow in the short term.
• Technical trading patterns and valuation psychology can accelerate moves once they start.

In short:

The stock price can fall even when the company is doing fine — simply because investors feel unsure, reprice expectations, or shift narratives.

That’s not unusual in markets, and it’s why price moves don’t always equal financial failure.

Q: I know this is really a tough one, but where would you expect CSU to bottom out?

Q: Hi Peter and Team,

The last question on the ETF DATA was last August. Please share your updated opinion of this ETF, and I hate to admit it, but the proceeds of the sale of some CSU will be used to purchase DATA, unless you have misgivings about DATA in general.

As always, thanks for your insight.

Q: The market keeps going up with high valuations for many stocks. What are your current top 5 Canadian and 5 US stocks with high convictions, good valuation and growth for the next 3 to 5 yeas in TFSA account. Please provide your rationale for each pick with risk level (H, M, L) and entry price if possible. Thanks.

Q: I would like to add to an existing position in one of CSU, TSLA or PLTR for a long term hold. Which would you suggest and why.

Thanks

Q: I sold this 'darling' in a new account in December for a tax loss, looking to re-purchase same in Jan. I didn't expect the price to drop an additional 20%. Do I re-purchase CSU during a 'down turn' momentum or ???

Q: Hi Team,
Can I have your take on NOW earnings? Beat on all metrics it seems like, yet the stock nose dives. CNBC has a headline saying "bear market is in for software stocks". What is a person to do now when I am stuck with NOW, and all the CSU family? Can I expect CSU, LMN, TOI to sell off a bunch more on earnings when they report like NOW is doing today even though they beat? I am finding it hard to decide whether to just Hold, buy more, or Sell? Usually selling is not a good long term idea in a proven quality name, but maybe this is different this time? However selling a sector that is being oversold might be a bad idea if I am expecting to invest it in momentum names at their "highs" (such as MU) that might roll over at any time...that would be a bad scenerio. Today is an awful day. My portfolio has peaked last October and still has not came back since and continues to fall. Losing confidence in holdings I thought were all quality names..

Thanks for any input you may have,

Shane.

Q: I currently don't hold any companies in the software space and I am looking to add some of these to my current portfolio. How would you rank them in order of purchase for a long term hold?

Q: Hi,

Sorry my last question meant to ask about individual stock compounders, not ETF's. Can you list 5 Cdn and US names that you would DCA into over time? For example, I'm assuming BN would be on that list. What other names? Looking for names that can CAGR +10-20% over time. Thanks!

Q: Patience is wearing thin on some of these names, they just continue to have negative momentum and I don't want to sell into the negativity and sell just because others are selling. What are your thoughts? Are fundamentals still strong in these quality companies? Is your updated view still a hold on these? Thanks!

Q: I don't think I've ever started a question with an apology, but sorry I'm bringing up these companies again.

I've read your Q & A's BUT I feel with the constant and dramatic fall of all 3 of these companies during a tech boom for tech stocks something else is amiss.


CSY -21% YTD (back to 2023 levels)
LMN -18% YTD (back to 2023 levels)
TOI -17% YTD (back to 2024 levels)

I could go on with

DSG-10% YTD
KXS-16% YTD

What is this telling you?

Should we not be buying CDN tech stocks. When looking for tech and healthcare just buy US?

If we hold these and are still positive should we just sell to prevent a loss?

Not sure what to do here. Waiting is soooo painful.

Thanks


Sheldon

Q: Based on your recent comments, after a near 50 % drawdown from its peak, CSU stock should find a bottom soon. Could you please take a look at the price action, volume and technicals, during this week's trading, specially, last 3 days, if it confirms your assessment and would you recommend adding at current levels.

Thank You

Q: Hello
How would you rate the following in order for each group for a buy today at todays price for a 3 year hold on a scale of 1-10. With 1 being don't buy and 10 being a great buy.

Group 1
CSU
SHOP
CLS
BN
WSP
TRI
BIP.UN

Group 2
GSY
GLXY
LMN
VNP
ZOMD
VHI
DCBO

Thank you for letting me ask this question